Friday, February 13, 2009

This effectively means the Trump Atlantic City Casinos are 4 days away from bankruptcy.

Feb. 13 (Bloomberg) -- Trump Entertainment Resorts Inc.founder and Chairman Donald Trump resigned from the board over disagreements with bondholders’ decisions and actions. Trump said in an e-mail today his investment is “worthless to me now.” He controls 28 percent of the stock, according to a March 21 regulatory filing. His daughter, Ivanka Trump, also resigned.

The Atlantic City, New Jersey-based casino owner skipped a$53 million coupon payment due Dec. 1, saying it needed to conserve cash and hold talks with lenders on restructuring its finances. The deadline has been extended four times since the month-long grace period triggered by the skipped payment expired Dec. 31. Trump Entertainment’s three casinos in Atlantic City have been through bankruptcy twice.

The company has been in talks to renegotiate its debt. Holders of most of Trump Entertainment’s $1.25 billion in notes and Beal Bank Nevada, which is owed $490 million, have agreed not to exercise default rights for interest or principal payments until 9 a.m. New York time on Feb. 17.

Gambling revenue in the seaside resort city fell a record7.6 percent in 2008, the second straight annual decline as the recession deterred some gamblers, and slot-machine competition from nearby states wooed others. The decline continued in January, with revenue down 9.4 percent.
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